Crypto and stocks see further losses as uncertainty deepens
BITCOIN fell below $80,000 this morning before bouncing back to around $81,700, while Ethereum is trading at multi-month lows, as broader economic concerns and policy uncertainty weigh on risk assets.
The crypto market’s downturn aligns with increased recession fears in the US, with some forecasts placing the odds at 40% for 2025. This has driven investors away from equities and cryptocurrencies, say analysts.
Uniswap (UNI), Chainlink (LINK) and Dogecoin (DOGE) are among the biggest losers this morning.
President Donald Trump’s economic policies, particularly on tariffs, have added to the uncertainty. His refusal to rule out a potential recession and comments on short-term economic turbulence have heightened market unease.
Meanwhile, the S&P 500 has seen sharp losses, mirroring movements in the crypto market.
"Many people have been worried about elevated valuations among US equities for some time and looking for the catalyst for a market correction," Dan Coatsworth, investment analyst at AJ Bell told Reuters.
"A combination of concerns about a trade war, geopolitical tensions and an uncertain economic outlook could be that catalyst."
Adding to volatility, Bitcoin holdings from the defunct Mt Gox exchange have been on the move, raising concerns about potential selling pressure from creditors. With economic headwinds and policy shifts creating an uncertain backdrop, investors remain cautious heading into the next inflation report on 12 March, 2025.
In the markets
🌍 Total crypto market cap ⬇️
The global cryptocurrency market capitalisation is currently approximately $2.58 trillion, showing a 4.06% decrease over the past 24 hours.
🟠 Bitcoin (BTC) ⬇️
- Price: Currently trading at $81,301 reflecting a 5.28% decrease in the last 24 hours.
- Daily high: $83,690
- Daily low: $76,784
💎 Ethereum (ETH) ⬇️
- Price: Currently trading at $1,902, reflecting a 8.07% decrease in the last 24 hours.
- Daily high: $2,146
- Daily low: $1,791
📈 S&P 500 ⬇️
The S&P 500 index is currently up by 2.7% from the previous close.
😬 Fear & Greed Index
The Crypto Fear & Greed Index is currently at 15, signalling Extreme Fear among investors.
📊 Bitcoin Relative Strength Index (RSI) (14)
The 14-day RSI for Bitcoin is at 36, indicating that the asset is bordering on being oversold.
Post Script…
Cautionary Notes
It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
